And to your point, traditional insurance (home, auto, etc) pretty much targets a specific profit margin of about 3% or $0.03 for every dollar they take in. They tend to get eaten alive by competition when they get greedy, unlike a lot of other industries. But rates increase as costs increase ro maintain that 3% target…and costs have increased a LOT in recent years.
It’s a pretty misunderstood industry tbh, and not without its own issues for sure. But overall it has its purpose and is heavily regulated to ensure they’re playing responsibly.
TheDarkKnight@lemmy.world 2 years ago
And to your point, traditional insurance (home, auto, etc) pretty much targets a specific profit margin of about 3% or $0.03 for every dollar they take in. They tend to get eaten alive by competition when they get greedy, unlike a lot of other industries. But rates increase as costs increase ro maintain that 3% target…and costs have increased a LOT in recent years.
It’s a pretty misunderstood industry tbh, and not without its own issues for sure. But overall it has its purpose and is heavily regulated to ensure they’re playing responsibly.
average650@lemmy.world 2 years ago
I basically agree. Those are actually insurance, and serve a purpose. Health “Insurance” isn’t insurance at all really…
TheDarkKnight@lemmy.world 2 years ago
Yes, agree with that. Health Insurance is just to ensure you have to have a job it feels like.